Peet Limited Posts 60% Profit Jump, Declares 7.75 Cents Dividend
Peet Limited reported a robust FY25 with a 60% surge in net profit after tax and declared a higher fully franked dividend, underpinned by strong sales and improved capital management. The company is also undertaking a strategic business review while navigating leadership transitions.
- Net profit after tax up 60% to $58.5 million
- Revenue increased 42% to $414.8 million
- Fully franked final dividend raised to 5.00 cents per share
- Gearing improved to 27.5% with extended credit facilities
- Strategic review initiated with Goldman Sachs amid CEO transition
Strong Financial Performance
Peet Limited has delivered a standout financial performance for the year ended 30 June 2025, reporting a 60% increase in net profit after tax to $58.5 million on revenue growth of 42% to $414.8 million. Earnings per share rose sharply by 61% to 12.48 cents, reflecting both operational strength and effective capital management.
The company’s EBITDA margin improved to 24%, driven by price growth across key markets including Western Australia, Queensland, and South Australia. Sales volumes increased by 11% to 2,768 lots, with settlements up 9% to 2,642 lots, underscoring robust demand in Peet’s core residential development markets.
Dividend and Capital Management
In recognition of the strong earnings, Peet declared a fully franked final dividend of 5.00 cents per share, bringing total dividends for FY25 to 7.75 cents per share, an 82% increase on the prior year. The Board has opted to keep the Dividend Reinvestment Plan deactivated, signalling confidence in cash flow generation and capital allocation priorities.
The Group’s gearing ratio improved to 27.5%, well within its target range, supported by $117.5 million in net cash inflows from operations. Peet also secured extended credit approval for its $300 million syndicated loan facility, extending maturities to 2027, 2028, and 2029, and adding a third financier. These refinements enhance financial flexibility and align with Peet’s growth strategy.
Strategic Initiatives and Market Outlook
Peet continues to invest in high-quality land acquisitions, including 480 lots in Palmview, Queensland, and 315 lots in Onkaparinga Heights, South Australia. The company is expanding its product offering with successful launches such as the Glendalough townhouse project in Western Australia and terrace homes in Forestville, South Australia.
Amid these developments, Peet has initiated a targeted strategic review led by Goldman Sachs to ensure optimal positioning in the evolving Australian residential property market. This review comes at a time when the company is well capitalised and poised to capitalise on favourable market dynamics.
Leadership Transitions and Governance
The year saw significant leadership changes, including the appointment of Greg Wall AM as Chairman and the stepping down of long-serving CEO Brendan Gore. The Board is actively searching for a new independent non-executive director to complement its governance framework. These changes reflect Peet’s commitment to strong leadership and strategic oversight as it navigates the next phase of growth.
Risks and Regulatory Environment
Peet acknowledges risks inherent in the property sector, including economic conditions, regulatory approvals, and market cyclicality. The Group maintains a focus on environmental compliance and climate change risk mitigation, with ongoing engagement with regulatory authorities. Its long track record of managing cyclical market risks and evolving consumer preferences positions it well for sustainable performance.
Bottom Line?
With a solid FY25 performance and strategic review underway, Peet Limited is setting the stage for growth; but investors will watch closely how leadership changes and market conditions unfold.
Questions in the middle?
- What strategic shifts will emerge from Goldman Sachs’ business review?
- How will the new leadership team influence Peet’s growth trajectory?
- What impact will evolving market conditions in Victoria and NSW have on future sales?